PRLA Restaurant & Lodging Matters Spring 2020

24 •  PENNSYLVANIA RESTAURANT & LODGING matters  •  Spring 2020 LEGISLATIVE CORNER STATE REGULATORY State Items FEDERAL HB 2408 (Markosek—D, Allegheny) was unanimously amended to clarify that payroll used via the PPP program is NOT subject to state and local taxes. Pennsylvania needed to pass this amendment to ensure state and local forgiveness. COCKTAILS TO-GO The House advanced legislation to allow struggling restaurants and taverns to serve “to-go cocktails” during the COVID-19 emergency declaration. The bill, House Bill 327 (Warren—D, Bucks), would allow R and H licensees that lost more than 25 percent of their average monthly total sales because of restrictions imposed during the COVID-19 disaster emergency to sell prepared beverages and mixed drinks for off-premises consumption. The Senate is expected to take up the bill when it returns. RELIEF FROM CHARGES While legislation has been passed to ensure “relief from charges” to employers for employees collecting unemployment, computer systems have not yet been updated to stop the automatic mailing of the “relief from charges” form to employers. If you receive this notice, complete section E (Disaster) on the form. Further, legislation is being pursued to extend “relief from charges” beyond the State of Emergency in recognition that it will take time for businesses to reach full operations. HALTING EVICTIONS & FORECLOSURES Sen. Tom Killion (R-Chester and Delaware) introduced Senate Bill 1116, which would temporarily halt evictions and foreclosures of businesses affected by measures implemented to prevent the spread of COVID-19. Further, the legislation would stop late fees and loan defaults from being assessed on businesses during the crisis. BUSINESS INTERRUPTION INSURANCE Sen. Vincent Hughes (D-Philadelphia) introduced SB 1114, which would temporarily change business interruption insurance during the pandemic. Sen. Hughes hosted a virtual press conference in April announcing his bill and invited PRLA and several restaurateurs to participate and give a face to this particular issue. SB 1114 was referred to Banking and Insurance Committee. LIABILITY PROTECTION FOR BUSINESSES Sen. Stefano (R, Fayette) will introduce legislation to provide Pennsylvania employers with reasonable protection from targeted lawsuits related to the COVID-19 pandemic. As we look forward to reopening Pennsylvania, this proposal would ensure business owners can resume operations without fear of being held liable for things beyond their control. PROPOSED SALARY THRESHOLD The House passed a resolution disapproving the Governor’s proposed salary threshold increase by a vote of 109-93, which is slated to take effect January 1, 2021. The resolution now moves to the Senate for approval. PROPERTY TAX RELIEF On April 20, Gov. Wolf signed SB 841(Martin—R, Lancaster) into law. Now known as Act 15, this legislation enables local governments to push back the due date for property taxes. It extends the early payment of property taxes to August 31, 2020, and extends property tax payments to December 31, 2020, with no late fees being assessed. While the state is authorizing this action, it is up to each local government to adopt their own ordinances. Local Items Allegheny County Council proposed paid sick leave legislation in the midst of the pandemic. PRLA sent a letter to Council expressing our opposition to its proposed paid sick leave legislation. Bethlehem City Council is exploring creating a licensing process and perhaps capping fees on third-party delivery apps. [Council is set to consider a measure drafted by Reynolds to get the administration to study the issue Tuesday, May 5 evening.] Philadelphia City Council has introduced legislation expanding paid sick leave and making it retroactive to the beginning of the crisis.